AUDIT BASICS

AUDIT BASICS

What is the value of an audit?

When it comes to an auditor, a lot of people question the value of them. As we all know a audit is to check and see how the company is performing. The audit is to see if the company is reaching its goals and are running a legitimate business. The value of an audit is very important. When there is an audit being conducted it has to make sure the company is meeting all of the requirements and if there needs to be any adjustments for the company so that the company performances are met.

Evaluate a Company's Performance and the operating effectiveness in order to ensure the company followed the standards to ensure that their objectives are met and utilize the results to improvement on process or changes in planning to achieve greater economy, efficiency, and effectiveness.

The audit reviews and evaluates the efficiency with which we have used the human, material, and financial resources. Also reviews and evaluates the results of operations to determine whether they have achieved the goals, the efficiency of process and effectiveness of internal audits

Who are the stakeholders in an audit?

The stakeholders are “anyone who is influenced either directly or indirectly by the actions of a company: (Rittenberg, Johnstone & Grambling, 2010) stakeholders are the people who make the major decisions when you are dealing with a company. In a company the executive, vice presidents, human resources, and presidents are the ones who make the major decisions in the company so they are the ones that are considered stakeholders.

They are the interested in direct or indirect way. The stakeholder is who has some influence on the company's decisions and action, for example:

- Administrators as directors, and executives

- Employees and neighborhood

- Shareholders

- The government

- Lenders

How does an audit affect those stakeholders?

An audit affects these stakeholders because the stakeholders are responsible for keeping the business running at a steady pace. They are responsible for making the major decisions and if they are not meeting these requirements than they can be audited and given a certain time to fix the issue or they can lose the company so audits has a big effect on the stakeholders.

Basically, the planning and execution of an audit should identify significant risks that requires assessment, then administration can have a clear view of the course to take and reduce the risks and make changes of poorly

...